Tracing Economic Transformation: The Impact of Nationalisation and Disinvestment in India (1990-2023)

Abstract

This study looks at the economic development of India over the period of time ranging from 1990 upto 2023 with reference to two broad policies, that is Nationalisation and Disinvestment. Nationalisation policies, the key focus in the years after the independence, was about government ownership of certain sectors such as coal, insurance, and banking in order to promote selfsustenance and fair distribution of resources. However, as time passed by, many PSUs were not functioning at optimum levels and were incurring losses and hence the need for structural changes became inevitable. The 1990s marked the advent of a new economic order with liberalization being the turnaround point along with Disinvestment policies which became the bedrock of reforms aimed at enhancing efficiency, minimising budgetary pressures and increasing the role of the private sector. This paper stresses on the privatisation of Air India and Life Insurance Corporation (LIC) listing as milestones while at the same time mentioning the limiting factors including political interference, disputes about valuation and unemployment.
While analysing and discussing the impacts of Nationalisation on social welfare and the effects of Disinvestment in the enhancement of productive efficiency respectively, the study attempts to look at the two policies in their interaction. The Discussion emphasises the need for a hybrid ownership model that combines the features of private enterprises and public tutelage. Such a perspective enhances coverage, meets evolving economic needs, and is integral to sustainable development.